Home Depot’s revenue came in at $38.87 billion, beating analysts’ estimates of $37.95 billion.
photo:
Sarah Silbiger/Bloomberg News
Home Depot Inc
HD -2.55%
sales rose 5.6% in the third quarter due to higher prices again compensates for delay in the transactions.
The home improvement chain said Tuesday that customers spent an average of 8.8 percent more per transaction in the quarter, while the number of transactions fell 4.3 percent.
It is sixth consecutive quarter in which fewer but higher dollar transactions have pushed Home Depot’s top line up, after a surge in demand for home improvement activities in the first year of the pandemic.
Revenue came in at $38.87 billion, beating analysts’ estimates of $37.95 billion, with comparable sales, which exclude store closings and openings, up 4.3% from last year. CEO Ted Decker pointed to strength in project-related categories as consumers continue to spend on furnishing their homes.
Home Depot reported net earnings of $4.3 billion, or $4.24 per share, compared with $4.1 billion, or $3.92 per share, a year earlier. Analysts polled by FactSet had expected $4.12 per share.
Shares fell 2.5 percent to $299.06 in premarket trading.
Home Depot’s biggest competitor,
‘s Cos., is scheduled to report earnings for the quarter on Wednesday.
Consumer spending has held up relatively well so far despite inflation, but experts say we’re approaching an inflection point. The WSJ’s Sharon Terlep explains the role that “elasticity” plays in a company’s decision on whether to raise prices. Photo illustration: Adele Morgan
Write to Dean Seale at [email protected]
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